Youngor's Capital Assets Tensiness Shrinks Ten Billion Assets

“The investment in 2008 was indeed a mistake. We need to reflect on it.” A few days ago, Youngruer’s chairman Li Rucheng admitted after he resigned his position as a director of CITIC Securities. After experiencing many previous successful investments, Youngor did experience a lot of trouble last year. .

The financial assets and the stock market value of their stocks have shrunk dramatically; investment in Haitong Securities has suffered a huge loss; Ningbo and Hangzhou have frequently claimed to be “kings” and have been deeply quilted... For a time, the rumors of Younger's tight funding chain are endless.

In such a time, Li Rucheng's big reduction in the holding of CITIC Securities, and even the board of directors of CITIC Securities, which has “stripped out” work for nearly a decade, has aroused the attention of the industry to the funding difficulties of Youngor Group.

Reducing stocks to cash out 3 billion

Last weekend, CITIC Securities announced that Li Ru’s busy business had submitted his resignation to the company’s board of directors. But everyone knows that Li Rucheng’s fading out is because Youngor’s stocks of CITIC Securities have been continuously reduced.

CITIC Securities's announcement said that as of the close of February 4, Youngor has sold a total of 175 million shares of CITIC Securities, of which, CITIC Securities reduced its shareholding before the transfer of 45.06 million shares, CITIC Securities after the transfer of share capital to reduce 130 million shares , Accumulation has exceeded 3% of the total share capital of CITIC Securities.

Therefore, after reducing the holding of 3% of the total share capital of CITIC Securities, Li Rucheng’s “desire” to resign is merely a procedural issue.

In fact, Youngor, as the sponsor shareholder of CITIC Securities, once ranked fourth among the top ten circulating shareholders of CITIC Securities. However, before this, CITIC Securities has long been sold frequently. Youngor's previous reduction announcement was announced on November 13, 2008. As of November 11, 2008, it had sold 100 million shares of CITIC Securities.

Thus, from November 12 last year to February 4 this year, Youngor sold 6985.591 million shares of CITIC Securities, which was approximately 1.43 billion yuan, and was used to cash out almost 3 billion yuan. At present, there is news that Youngor’s goal of reducing his holdings in the next step is Haitong Securities, which has been dubbed.

Financial assets shrank billions

Zhejiang’s initial impression of Younger began with clothing. However, in the past two years, it has rapidly become popular throughout the country because of successful investment in securities finance. For a time, Youngor has become a model for domestic private enterprises to set foot in the field of financial investment.

However, like the sudden changes in the stock market, Youngor’s financial assets have now shrunk from the top 20 billion yuan to about 10 billion yuan. The market value of Youngor's stock itself is evaporating 38.65 billion yuan in 2008, ranking first among listed companies in Zhejiang.

“In addition to the fact that the proceeds from investing in CITIC Securities and Ningbo Bank have been greatly reduced, Youngor’s financial investment last year has basically failed.” A person in the securities industry said that in fact, Youngor has not shaken off the mentality of many private companies “stocking”.

According to Youngor’s third quarterly quarterly report, before November 2008, Youngor held 200 million shares of Haitong Securities, and the buying price was 17.94 yuan. At present, the stock price of Haitong Securities is only around 13 yuan, in order to estimate that Youngor has floated. Losses of 800 million yuan; In addition, there are also nearly 70 million yuan floating losses in the investment of Kinmen and Matsu.

In fact, financial investment is not only a result of these two huge projects. Youngor's investment in Shuanghe Pharmaceutical, China Railway Construction, Daqin Railway, and Panzhihua Steel and Vanadium all suffered losses. Only CITIC Securities, Ningbo Bank, etc. Due to the ultra-low cost of holding shares, it is still profitable. This answer must wait until Youngor's 2008 annual report can be fully opened.